The Deck: An Ad Network
Sep 11 2007 Tue
6:31 pm PHT
Advertising on the web is here to stay, and that’s a fact of life. Otherwise, there’d be a whole lot less free services and content for us to read. In exchange for free access to a whole lot of websites, we have to accept that most of these websites will have ads.
Without a doubt, the most successful ad service on the web is Google’s AdWords-AdSense programmes. Advertisers buy ad space via keywords and sites using the AdWords program while web publishers sell ad space on their web pages through the AdSense program. This is a normal set-up for most advertising services but what makes Google’s offering very special is that their ads are primarily text-based—no annoying graphical animated pop-ups that drive web surfers crazy—and that their program tries to match the ads to the web page’s content.
This is a vast win-win situation for everyone involved. The web surfers are not annoyed by the ads as much and may even find some ads useful because it’s relevant to the page they’re reading. Advertisers get more bang for the buck because their ads are more targeted resulting to a higher conversion rate. Finally, Google, and especially the web publishers, earn money to help support their site operations without being obtrusive to their visitors. Google’s advertising program is so successful, in fact, that of the $10.6B in revenues that Google earned in 2006, 99% of that is derived from advertising. (Reference)
But I don’t consider Google’s AdWords-AdSense the best kind of web advertising there is. For me, I think that Coudal Partners’ ad network The Deck is the best I’ve seen in the industry. Check out their page to read the details, but essentially, advertisers can buy any of 18 ad spots for $5,500 per month consisting of a 120x90-pixel graphic and an accompanying 75-character-maximum text blurb. These ads are rotated across 21 sites whose combined viewership reaches several million impressions (page views) per month. What makes this attractive to advertisers is the fact that The Deck ad is the only ad readers see on every page of these sites.
The Deck ad network is also quite an exclusive club. If you’re a web publisher, you don’t apply to join their select group, they select you instead. And if you’re an advertiser, they won’t accept you unless they’ve tried your products. As they say on their page, “We’re picky about the advertising we’ll accept. We won’t take an ad unless we have paid for and/or used the product or service.“ Now that’s truly a win-win situation for everyone involved.
(Some of you might be interested or amused to learn that Text Link Ads, possibly the second most popular ad service among Pinoy bloggers after Google, is a perennial advertiser on The Deck.)
As I said, I consider The Deck to be the best ad network there is. I’ve been regularly reading a few of the websites in their network from several years back and that’s how I came across this ad network. I was surprised when I asked Rico and Abe about it a few months ago and they professed not to know much about it.
Assuming that The Deck’s ad revenue is distributed equally among the sites and that Coudal Partners gets only a 5% cut (they are one of the 21 sites after all), each site gets a nice $4,500 every month. That’s almost the average salary that a web designer/developer in the United States gets! Many of their member sites are personal blogs and The Deck gives them a nice tidy sum just for blogging. Isn’t that great?
I seriously believe that such a business model is something that we can adapt to the Philippine setting. The ad network will group together some of the most infuential Pinoy websites and will target local advertisers. Factoring in relative web traffic and cost-of-living, I think that a monthly rate of 25,000 pesos is a good enough figure for a local version of The Deck. Now that’s something local bloggers might be interested in looking at.


Comments
Comment times are in Philippine time (+0800).
1
On 3:34 a.m., 12 Sep 2007, markku wrote:
Eugene, most of those serving The Deck ads are personal blogs of the best web designers around the world. Precisely why they can choose to be very picky with their advertisers and their fellow publishers.
I like how they value their service by using their “cost per influence, not cost per impression” model.
And yes, I seriously think this can be done locally. Right now, I think <a href="http://www.madcrowdmedia.com/">Mad Crowd Media</a> is the closest thing to this.
2
On 9:19 a.m., 12 Sep 2007, Joni wrote:
Hi Eugene, we’re currently looking for advertising sites for our products at work and The Deck does sound interesting. Medyo mahal nga lang yung $5,500. I think The Deck is a good alternative for advertisers who aren’t targeting a specific market, traffic and backlinks. In our case though, we are. What we’re selling isn’t something that everybody would be interested in (mga pilots, navy, war veterans lang, etc, hehe), and we don’t have that huge a budget for advertising, that’s why as much as possible we’re looking for publishers and advertising websites with the kind of audience and quality traffic we’re looking for that are sure to provide higher conversion rates. Sayang. But it’s nice to know we have another option. Thanks for the info!
Yes, I also think that this would be effective in the Philippine setting. Lalo for big advertisers who find 25,000 pesos a small price to pay.
3
On 10:13 a.m., 12 Sep 2007, Rico wrote:
With the details you’ve mentioned, now I know what you’re talking about!
The Deck’s business model is Run of Network, which means they’re bunching the member blogs together and presenting it to advertise as one group. I like the quality of their members, especially fortuito.us.
4
On 4:02 a.m., 13 Sep 2007, markku wrote:
Rico, regarding The Deck’s members, I just have one answer: Zeldman.com!
5
On 9:50 a.m., 13 Sep 2007, seav wrote:
@Markku, among the site, I’m only subscribed to Kottke.org, Zeldman, and A List Apart. I read from time to time Daring Fireball (but I’m not an Apple fanboy, so I’m not subscribed there), 37signals, Fortuitous, and Airbag. Waxy.org and 37signals, while great, have too high a volume for me. Zeldman, while an institution, is getting too “pink” for me so the best for me among the sites is still A List Apart.
@Joni, actually, The Deck is a targeted ad network. I just didn’t mention that the audience is into the creative professions: web designers, web developers, graphic artists, etc. Case in point: Helvetica: The Film (Helvetica is the most well-known typeface on which Arial is based on) is one of the sites.
@Rico, yep, their strategy of presenting the whole set is much more effective than if each site is advertised on their own. While some of these sites can earn much more if they struck out on their own, being part of The Deck has a certain prestige that having ads all over the place can never achieve.
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